Chapter 2 Flashcards
Yearly interest rate
APR
Another term for interest and APR
finance charge
The money you borrow
principal
The date by which you must repay the money you borrow
maturity date
The smallest amount due to the lender to keep your credit in good standing
minimum payment
A situation in which a court rules that a person is not able to pay his or her bills
bankruptcy
Monthly payments
Installments
A yearly fee that some companies charge in addition to the interest
annual fee
Possessions that a borrower pledges in return for a loan
collateral
Record of you paying bills
credit history
I don’t give a flying _____
finch
Monthly rate
periodic rate
An interest rate that changes over time
variable rate
Fail to pay your bill on time
default
A loan that does not require collateral
unsecured loan
A person with good credit rating who signs a loan note along with a borrower
cosigner
Spending more than you earn
deficit spending
legal responsibility
liability
the means by which
people protect themselves financially against losses or liability
incurred as a result of unexpected events.
insurance
fee for being protected by the insurance
premium
contract that promises to pay for the losses
policy
demand for payment in accordance with payment
claim
amount you must pay before the insurance company pays anything
deductible
protects car owners from financial loss
Automobile insurance
this pays for repairing costs for your car if it rolls over or collides with something
Collison insurance
pays for repairing damage other than collision
Comprehensive
helps you pay the cost of repairing the damage to other people
Liability
protects you if your car is damaged by a driver who has no auto insurance
Uninsured motorist protection
covers the cost of towing your car to a repair shop in an emergency
Emergency road service
laws that make a person responsible for his or her own damages and injuries
No-fault
person who sells insurance
Insurance agent
list of your property and its value
Inventory
a federal government program, provides health insurance to people who are
aged 65 and older and qualify for Social Security benefi ts, or who are disabled.
Medicare
provides health insurance for people with low incomes and those in need of public
assistance.
Medicaid
money paid for each doctor visit or other health service
copayments
is a plan that provides payment to the insured for the cost of medical care but makes no
arrangement for providing care itself.
indemnity plan
requires you to consult a primary care physician when you need medical care
managed care plan
a type of disability
insurance that covers medical expenses and part, or most, of income lost due to injury in the
workplace
worker’s compensation
provides a way to protect your family and loved ones from financial losses
if you should die
Life insurance
a person who will receive insurance benefits
beneficiary
is a policy that you buy to cover a certain period of time
Term life insurance
provides coverage for your entire lifetime.
Whole life insurance
is insurance for a specific period that accumulates savings for
policyholders during this period.
Universal life insurance
when someone uses your personal information without your permission to
commit fraud or other crimes.
Identity theft
`the creating of a website replica in order
to trick users into submitting personal, financial, or password data online.
phishing
